Horizon Space Acquisition I Corp.(HSPOU) - 2024 Q1 - Quarterly Report

Financial Performance - The company has not generated any revenue since inception and has incurred losses primarily from formation and operating costs[89]. - For the three months ended March 31, 2024, the company reported a net income of $733,464, primarily from interest and dividend income of $881,123[103]. - The company has incurred significant professional costs to remain publicly traded and expects to continue incurring transaction costs in pursuit of a business combination[108]. IPO and Funding - The IPO raised gross proceeds of $69 million from the sale of 6,900,000 units at $10.00 per unit, with an additional $3.86 million raised from a private placement[90][91]. - The company plans to use the net proceeds from the IPO to acquire a target business and cover related expenses, including deferred underwriting commissions of $2.415 million[105]. - A total of $60,000 was deposited into the Trust Account for the Monthly Extension Fee, allowing an extension of the business combination deadline[97]. Business Combination - The company has until March 27, 2024, to complete a business combination, with the possibility of extending this deadline up to nine months[94]. - The company has entered into a non-binding Letter of Intent with Shenzhen Squirrel Enlivened Media Group for a potential business combination, but no definitive agreements have been made[96][98]. Financial Position - As of March 31, 2024, the company had cash of $93,109 and a working capital deficiency of $462,469[108]. - As of March 31, 2024, assets held in the Trust Account amounted to $60,163,810, primarily in mutual funds[115]. - The company has no off-balance sheet financing arrangements or long-term liabilities as of March 31, 2024[109]. Investments and Securities - The net proceeds from the IPO have been invested in U.S. government treasury bills, notes, or bonds with a maturity of 185 days or less[133]. - The company’s investments held in the Trust Account are classified as trading securities, with gains and losses included in interest and dividend income[115]. - The company accounts for warrants as either equity-classified or liability-classified instruments based on specific terms and applicable guidance[116]. Accounting and Tax - Share-based compensation expense is measured at fair value upon grant date and recognized over the requisite service period[119]. - The company has identified Cayman Islands as its only major tax jurisdiction, with no significant uncertain tax positions requiring recognition[129]. - The company does not anticipate any adjustments that would result in a material change to its financial position regarding income tax positions[130]. - The adoption of ASU 2020-06 on January 1, 2024, did not have a material effect on the company’s financial statements[131]. Fair Value Measurement - The fair value of financial instruments is determined using market approach, income approach, and cost approach[124]. - The company’s ordinary shares subject to possible redemption are classified as temporary equity and presented at redemption value[121].